Schreiber Dynamix

Dairy Industries Ltd

Business Analysis

Pradeep Kumar
09020242026
 INTRODUCTION
• Dynamix Dairy Industries Ltd. is a
joint venture between Schreiber
Foods Inc., USA and the Goenka
family with Schreiber as the
majority shareholder in the
company

2
Schreiber Foods Dynamix dairy
deal
• Rabo India Finance Pvt Ltd (RIF)


• Replacement of around Rs 100 crore

of high cost debt.


• Infusion of fresh equity worth Rs 35-

40 crore


• 3
• 51 per cent controlling stake in DDIL.
• The association with the international
fast food giant also provides
suppliers an access to overseas
markets for the export of their
products.
• Making Schreiber the largest
shareholder in Dynamix

4
 Schreiber Foods
• Schreiber Foods is a $3+ billion
global enterprise and the world’s
largest customer-brand dairy
company.
• The products to the biggest names in
fast food chains.
• The world's largest supplier of
private-label dairy products to
grocery chains and wholesalers.
5
 A leader in innovation
• From manufacturing their own
printed packaging to developing
new products.


• Designing cheese-processing
equipment.


• Technology leader.

6
 Schreiber Dynamix Dairies
India

Mexico China

Schreiber Food ,
Green Bay , U . S .

Germany Brazil

7
Products of Schreiber Foods
• Natural Cheese • Table butter
• Process Cheese • Ghee
• Cream Cheese • Process cheese
• Specialty Cheese • Dairy whitener
• Substitute and • UHT – Plain /
Imitation flavored milk
Cheeses • UHT – Fruit juices
• String Cheese
•
• Butter Blends
• Yogurt
8
 Dynamix Balwas Group
• Promoted by two families,
• The Goenka Family and
• The Balwa Family, bonded together
through a dynamic spirit.

9
 Dynamix Balwas Group
• The Goenka Family & the Balwa
Family have come together to form
the Dynamix Balwas Group
• Headed by young visionaries, the
Group is dynamic in its approach.
• A proactive and strategic mind-set
ensures that the Group surges
forward, always, with a dynamic
spirit.
10
 The Goenka Family
• Real estate business
since the last 25
years
• Headed by Mr. K. M.
Goenka ,Mentor  
• Mr. Vinod K.
Goenka, and Mr.
Pramod K. Goenka.
• Mr. Vinod K.
Goenka is the
Chairman, 11
 The Balwa Family

• Hospitality and Real

Estate business
since the last 98
years,
• Headed by Mr.
Usman Balwa
• Mr. Shahid U. Balwa,
Managing
Director, Dynamix
Balwas Group. 12
 Changing the face of
Townships and Industries
• The Group was born from the
dynamic vision of Mr. K. M. Goenka
who started with an initiative
through a foray in the Real Estate
development.
• Fuelled by the success in Real Estate,
the Group gained the impetus to
diversify and expand its business
interests. 
13
 CORE VALUES

• Trust, Honesty and Reliability

•
• Customer Focus
•
• Building through Relationships
•
• Social Awareness & Responsibility

14
 R E A L E S TA T E  

D A IR Y

G R A N IT E & M A R B LE

B LO C K S & PA V E R S

H O S P ITA LIT Y

E D U C A T IO N
15
 Dairy sector
• India is the world's highest milk
producer.


• Accounts for more than 14% of

the world and 57% of Asia’s
Total production.


• Largest milch animals in the

world 198 million cattle and 86
million Buffalo. 16
 Dairy sector
• Potential that can catapult india
as major dairy exporting
country globally.


• Growth rate of 6%.



• At present only 15% of milk is

Packed.
17
 All India Milk production

• Source: Department of Animal Husbandry, Dairying & Fisheries,

Ministry of Agriculture, GoI

• 18
Milk Production in India

 Source: Department of Animal

Husbandry, Dairying & Fisheries, 19
 Milk Production top 5 states

• Source: Department of Animal Husbandry, Dairying & Fisheries,

Ministry of Agriculture, GoI
20
 Per Capita Monthly Consumption Expenditure on  Broad 
Groups of Items 
 (in Rs.) 
Average 
Milk and 
NSS  Meat, Egg,  Total       Size of 
Milk  Total Food Total Exp.
Round Fish Non-Food Househol
Products
d
25th (1970 - 1971)
Rural 3.03 1.02 25.98 9.33 35.31
Urban 5.01 1.9 34.04 18.81 52.85
27th (1972 - 1973)
Rural 3.22 1.09 32.16 12.01 44.17 5.22
Urban 5.91 2.07 40.84 22.49 63.33 4.72
 61st (July 2004-June 2005)
 Rural   47.31 18.6 307.6 251.19 558.78 5.08
 Urban   83.3 28.47 447.41 604.95 1052.36 4.55

• Source : Level & Pattern of consumer expenditure, Various issues,

National Sample Survey Organisation, Ministry of Statistics &
Programme Implementation, GOI 21
Source: Central Statistical Organisation, Dept. of Statistics, GOI 
22
23
 Milk & Dairy Industry
Structure
• State co-operatives & privately
owned Indian companies dominate
the liquid milk sector.
•
• Gujarat Cooperative Milk Marketing
Federation Ltd. (Amul) and Nestle
are the leading players in the
value-added segment 24
 Dairy Cooperatives
• The Dairy Cooperative Network (on
Mar 2009)
• Includes 177 milk unions
• Operates in over 346 districts
• Covers 1,33,349 village level
societies
• Owned by around 13.9 million farmer
members of which 3.9 million were
women.
25
 Dairy Cooperatives
• Tired of exploitation by traders and
local private dairy, the milk
producers organized themselves
into village dairy cooperatives.
• Kaira Milk Producers Union had its
first dairy plant.
• It started producing and
marketing milk products under
the brand name Amul.
26
 Dairy Cooperatives
• Under the leadership of V. Kurien,
the father of milk revolution, the
Amul model of cooperatives soon
became an example for others to
emulate.
• The government wanted the Amul
model to be replicated in other
parts of the country. Its own
controlled dairy cooperatives had
failed. Amul is today the most 27
 Dairy Cooperatives
• The de-licensing of the dairy industry
has not threatened dairy
cooperatives.


• They seem to march ahead despite

the entry of the private sector and
multinationals.


• Britannia has been forced to

withdraw from the liquid milk
market in many parts of the 28
 Strength Of Dairy
Cooperatives
• The biggest strength of dairy
cooperatives is their labour
intensiveness.
•
• Cost effectiveness is another
important factor.


• Dairy cooperatives have effectively

used the toil of farmers to develop
self-reliance. 29
 Marketing
• In 2008-09, average daily
cooperative milk marketing stood
at 200.4 lakh litres; annual growth
has averaged about 6.1 percent
compounded over the last five
years.


• During 2001-2009 the daily milk

supply by Cooperatives to each
1000 urban consumers has 30
 Macro Impact

• The annual value of India's

anticipated milk production
amounts to more than Rs.1,430
billion in 2008-09.


• Dairy cooperatives generate

employment opportunities for
around 13.9 million farm families.
•
31
 Macro Impact

• Livestock contributes about 25.6

percent to the GDP from
agriculture.
•
• About 22.45 million people work in
livestock sector, which is around
5.8% of the total work force in the
country.


32
 By-products of dairy
industry

• Curd
• Cheese pieces
• Milk fat, curd pieces and
coagulated milk
• Whey
• Cassein protein

33
 USES OF TECHNICAL
CASEIN
 Technical Casein  Aluminium Foil
can be used in  Safety Matches
following
products:  Pigments
 GluesCosmetics  Coated Paper
 Leather  Plywood Industry
 Chemicals  Paper Cones
 Paints  Paper tubes
 Plastics  Paper Chemicals
•

34
 APPLICATION / USES OF
INDUSTRIAL CASEIN

• It is used in Papercone Industry in

bulk quantity for the purpose of to
stick paper with cone.
• It is used in Adhesive Industry, Paint
Industry, Leather Industry and
Paperchemical Industry.

35
• Biodegradable protective films are
being made from dairy and biofuel
byproducts by combining the milk
protein casein with water and
glycerol
• The film can be used as an edible
coating, which extends the shelf life
of food products

36
SWOT analysis of Dairy
sector

37
 Dynamix Dairy Industries
Limited (DDIL)
• Headquartered at Mumbai, the Group
companies are managed by well-
qualified and experienced
professionals, known for their
dynamism and ability to achieve
Corporate Goals.
• The slogan "Dynamism at work" says
it all and it is the team's constant
endeavor to meet the high
standards set by them. 38
 Dynamix Dairy Industries
Limited (DDIL)
• The Company is ISO 9002 certified
with revenues in excess of INR 3
billion in 2005-2006.
• State-of-the-art technology and back-
up extension services.
• One of the front-runners and the
most trusted names in milk
processing in India.

39
 Dynamix Dairy Industries
Limited (DDIL)
• Dynamix Dairy Industries Limited
Deepak Jain, its managing director.


• The Milk shed of Dynamix covers

seven districts in western
Maharashtra.
•

40
41
 Dynamix Dairy Industries
Limited (DDIL)
• Dynamix has made substantial
investments in setting up bulk
cooling facilities - which protect the
milk from contamination - at
several collection centres around
its plant in Baramati.
• The company works with the
Baramati Milk Union Cooperative to
create awareness among farmers
on hygiene and veterinary care. 42
 Manufacturing Plant
• DDIL has a high-tech milk producing
plant located at Baramati near
Mumbai.
• The Plant, designed by the renowned
Valio of Finland, sprawls over an
area of more than 25 hectares.
• Processes more than one million
liters of cow milk every day.

43
44
 Manufacturing Plant
• The plant is fully automated by
Siemens India with inputs from
Tachenhagen, U.S.A. and Ireland.


• The plant strictly works on the

guidelines laid down by the GMP
and Hazard Analysis Critical
Control Point (HACCP) programmes.

45
 Backward Integration

• The backward integration

programme of DDIL is the result of
its commitment to produce dairy
products par international
standards.


• The Company has set up hundreds of

bulk cooling stations in 110 villages
to preserve the quality of milk.
46
 Backward Integration
• A demonstration dairy farm has also
been setup to educate the rural
milk producers to improve and
upgrade their native skills
regarding genetic improvement of
the milch-cattle, disease control
and regulated feeding.
•

47
 Global Technology
• The milk, before being sent for pre-
processing, is checked for quality
using a series of stringent quality
control measures.
• The best quality milk is then pre-
processed by means of special
equipment imported from
Germany, known as Bactofuges, to
render it absolutely bacteria-free.
48
 Global Technology

• The technology to manufacture

Cheese has been provided by
Schreiber Foods, U.S.A.
• The Casein technology has been
imported from Westphalia,
Germany, which are considered to
be the leaders in this science.
• Whey Systems, U.S.A has supplied
the know-how to manufacture
Lactose. 49
 Milk procurement
• In Maharashtra, to procure milk has
an agreement with the Baramati
cooperative, we have been able to
establish a system that ensure the
supply of high-quality of milk.
• Payment is done according to the fat
content.
• More often he gets a better price
than when he supplies directly to
the cooperative. 50
51
 Milk procurement
• The dairy has the seven districts of
Pune, Solapur, Ahmednagar, Beed,
Satara, Sangli and Kolhapur as its
milk shed area.
• Satara, sangli and kolhapur are
predominantly buffalo milk region
which is used to prepare cream
cheese.

52
 Milk procurement
• Dynamix Dairy devised a quality
programme for milk procurement
and invested significantly in setting
up bulk coolers at all milk collection
centres Baramati area.
• Bulk cooling centres were located at
an accessible location so that the
farmer had to travel only a distance
of 1-2 km from his farm to the
collection centre. 53
 Computerised MILK
COLLECTION
• As soon as a farmer arrives at the
collection centre, a sample of the
milk poured into a tube.
• The sample's fat content instantly
flashes up on a flickering computer
screen. This determines the price of
the milk.
•

54
Computerised MILK COLLECTION

• The can is then weighed. A printed

receipt for the farmer displays the
milk's fat content, weight and price
and he collects his money.
• Every day of the 1.5 million litres of
milk is been monitored throughly
through various stages.

55
 Dynamix dairy products
• Cheese, Butter, Ghee, Dairy Whitener,
Non-Dairy Creamer, Skimmed Milk
Powder, Yogurt, Lactose, Casein and
Whey Protein Concentrate.

56
 Dynamix dairy products
• The company is also into UHT
flavored milk and fruit juices
packed in tetra packs, which do not
require the cold chain.
•

57
 Dynamix Manufactures
• The Milkman brand of Britannia,
• Tropican juices,
• Nestle milk and curds,
• Lipton lemon tea
• Provides 100 per cent of the cheese
used by the McDonalds chain.
• Pepsi -Mango Slice in tetra paks.

58
59
60
 LIQUID FRESH
MILK
ES
T

BU
LA

T
CO

T
ER
O
CH
ICE CREAM,

PIZZA
Cheese

61
• Pre-McDonald’s era owing to lack of
infrastructure while within the
region the market was not large
enough.


• "Consequently, milk producers were

throwing away the excess milk and
increasingly opting out of the milk
business,".
62
 Mc donalds
• Making india export hub for it
products.
•
• Slice-on-slice cheese for McDonald's
•
• It provides an opportunity to expand
their business, have access to the
latest technology and exposure to
advanced practices as well as the
ability to grow as McDonald’s
expands in India 63
 Britannia
• DDIL's Rs 200-crore plant contract
manufactures a range of products
for leading multinational brands in
the country.
• These include processed cheese,
butter, UHT-Tetrapak flavoured milk,
ghee and dairy whitener for
Britannia (marketed under the
latter's Milkman brand),
64
• Yoghurt (dahi), butter and UHT plain-
cum-flavoured milk for Nestle.


65
• Dynamix also uses its UHT-cum-
aseptic packaging facility for
producing Pepsi's Tropicana brand
pure fruit juices.


• The plant makes milk powder and

other bulk commodities such as
industrial and edible grade casein,
lactose and whey protein
concentrates, which are largely 66
•  Hindustan Lever (Kwality, Walls,
Max, Magnums)
• Glaxo Smithkline, Pizza Hut.

67
 Milk holidays
• Stopping of milk procurement Feb
2009


• Dairies claim to have been hit by

cheap imports from New Zealand
and the subsidizes of the US, EU,
New Zealand and Australian
governments.


•  Ban on imports of dairy products 68

 SWOT ANALYSIS
Technical manpower Problem in distribution
Demand Perishability

Margins Competition

Schreiber 

deal 

Flexibility in market Milk vendors

Export Competition

potential

69
 SBI MoU Dynamix Dairy
• Contract farming has commenced with
financing of cows and bulk cooling
stations for collection of milk.
• Funding has come from State Bank of
India’s contract farming and value
chain financing, while Schreiber
Dynamix Dairies Ltd has brought in
the processing power and this has
touched a wide base of one lakh milk
producers in the milk shed area of
seven districts of western 70
 Conclusion
• Several global brands have been
acquiring top domestic dairy
companies in India like Amul and
Dynamix to use their distribution
strength and build India as a hub
for low-cost milk supplies.
• Especially at a time when global milk
supplies are hitting through the
roof. 
71
72